https://www.taxtmi.com/caselaws?id=101178 Section 536(2) of the Companies Act, 1956 permits the court, in a winding-up context, to validate transactions and charges over company property where the arrangements are bona fide and support a realistic revival of the business. Here, the company's closure, subsequent governmental concessions, relief undertaking status, suspension of existing liabilities, and actual resumption efforts were treated as material circumstances showing a genuine attempt to restart operations. The proposed borrowing and security creation with State Bank of India and Industrial Development Bank of India were viewed as measures to keep the business running, with the interests of creditors, workers, and the company better served by resuscitation than by freezing assets pending winding up. en-us Thu, 20 Dec 1984 00:00:00 +0530 Wed, 08 Feb 2012 18:00:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=101178 Section 536(2) of the Companies Act, 1956 permits the court, in a winding-up context, to validate transactions and charges over company property where the arrangements are bona fide and support a realistic revival of the business. Here, the company's closure, subsequent governmental concessions, relief undertaking status, suspension of existing liabilities, and actual resumption efforts were treated as material circumstances showing a genuine attempt to restart operations. The proposed borrowing and security creation with State Bank of India and Industrial Development Bank of India were viewed as measures to keep the business running, with the interests of creditors, workers, and the company better served by resuscitation than by freezing assets pending winding up. Case-Laws Companies Law Thu, 20 Dec 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=101178